The Hong Kong government opened applications for Virtual Asset Service Provider (VASP) licenses in June last year, with a deadline of February 29th this year. A total of 24 operators, including OKX, Bybit, Crypto.com, and Huobi HK, submitted applications. However, well-known operators such as Binance and Coinbase were not on the list.
The VASP licensing system was launched by the Hong Kong government in June last year, with a one-year transition period. All Hong Kong VASPs were required to submit their applications by February 29th this year. Cryptocurrency exchanges that failed to submit their license applications by this date must cease operations in Hong Kong by May 31st.
According to data from the Hong Kong Securities and Futures Commission, a total of 24 operators submitted applications. However, the world’s largest cryptocurrency exchange, Binance, as well as US-listed exchanges Coinbase and Kraken, did not submit applications.
The operators that have submitted applications include OKX, Bybit, Crypto.com, Huobi HK, Matrixport HK, Gate.HK, WhaleFin, Bullish, PantherTrade, BGE, HKbitEX, HKVAX, VDX, and others.
Only two platforms, OSL and HashKey, have been issued licenses so far. The Hong Kong Securities and Futures Commission reminds that being on the application list does not guarantee the issuance of a license. It is possible that these platforms may have to cease operations in Hong Kong.
Angela Ang, Senior Policy Advisor at blockchain intelligence company TRM Labs, stated that the VASP application list is a litmus test for industry sentiment. The fact that many well-known operators have submitted applications is a positive sign. What Hong Kong truly needs is a group of determined and influential participants to support its ecosystem. The key for the future is to observe how many companies actually invest in the Hong Kong market.